Annexes to COM(2010)553 - Regional Policy contributing to smart growth in Europe 2020

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dossier COM(2010)553 - Regional Policy contributing to smart growth in Europe 2020.
document COM(2010)553 EN
date October  6, 2010
annex to this communication suggests ways of building on regional diversity and ensuring an efficient use of scarce resources by exploiting synergies between funding sources and between the research and innovation systems in different regions. These actions should be seen in the context of and be complementary to the "Innovation Union" flagship initiative.

Annex 1 – Actions to attain the smart growth objectives of EU 2020 through regional policy and its funding

Action 1: Develop smart specialisation strategies

This action aims at concentrating resources on the most promising areas of comparative advantage, e.g. on clusters, existing sectors and cross-sectoral activities, eco-innovation, high value-added markets or specific research areas. The development of such strategies can start immediately, drawing on support for technical assistance and subjecting them to international peer review.

If this action is retained, it must be accompanied by two flanking measures:

- Reinforce ERDF support for education, research and innovation in the current period to boost investment in these areas, including by drawing on complementary funding from FP7 and CIP. The framework conditions for research and innovation and a knowledge-based economy should be improved by aligning ERDF support with the National Reform Programme priorities ( linked to Guideline 4 of the Integrated Economic and Employment Policy Guidelines).

- Make full use of the flexibility in the EU Regional Policy programmes to redirect funding to this end. The Commission will support requests for such redirection that accords with a smart specialisation approach and speed-up their approval.

Action 2: making more extensive use of financial engineering instruments in support of innovation, including soft loans, guarantees and venture capital, according to the type and size of firm and risk involved. The expansion of lending and equity financing for innovation through existing instruments, including the EIB group, and particularly to SMEs should be a policy priority;

Action 3: pursuing the possibility (under Article 37 (6)(b) of Regulation EC No 1083/2006) to finance interregional cooperation to promote research and innovation under the Convergence and Regional Competitiveness Objectives and better access to international research and innovation networks under FP7 and CIP;

Action 4: ensuring coherence between supply push and demand pull research and innovation policy, by making use of the opportunities offered by public procurement co-financed by the ERDF to increase the innovation content of products, processes and services;

Action 5: using international peer review by independent experts for research projects more systematically to enhance the effectiveness of support;

Action 6: considering the use of the ERDF for financing suitable shortlisted FP7 and CIP projects;

Action 7: exploiting the possibilities for improving regional innovation policy through the peer learning offered by FP7, CIP and INTERREG IV C platforms and networks.

The implementation of the above actions should be set out in a dedicated section of the implementation reports and discussed by Programme Monitoring Committees.

Annex 2- List of actions to be undertaken by the Commission

To support the action mentioned in Annex 1 in the case they are retained by the Member States, the Commission will:

- Facilitate the formulation and implementation of smart specialisation strategies by national and regional governments through:

- developing a ‘Smart Specialisation Platform’ before 2012, bringing together expertise from universities, research centres, regional authorities, businesses and Commission services so as to help identify needs, strengths and opportunities;

- data, policy analysis and information on research and innovation performance and specialisation from an EU-wide perspective (in particular the European Cluster Observatory, the Regional Innovation Scoreboard and Monitor and the Sectoral Innovation Watch);

- platforms for mutual learning on the design and implementation of such strategies (including the CIP-funded “European Cluster Cooperation Forum”[13] and the European Cluster Alliance and the FP7-funded ‘Regions of Knowledge’ and Research Potential projects).

- Assist Member States and regions to implement education, research and innovation projects through knowledge transfer and diffusion of good practice, with the help of the 'Regions for Economic Change' initiative (including 'RegioStars') and by providing technical support to innovation-based Fast Track regional networks as well as to inter-regional collaboration supported e.g. under INTERREG IVC, Regions of Knowledge and CIP-funded cluster activities.

- Work closely with financial institutions to leverage funding and maximise the use of existing financial instruments, as appropriate, including by possibly establishing a RSFF[14] window/facility dedicated to Convergence Regions, more intensive use of JEREMIE[15] to provide risk finance and guarantees to stimulate innovation in SMEs and technology-based start ups; as well as by examining ways of extending the scope of existing financial engineering instruments to new research and innovation activities.

- Facilitate business opportunities for SMEs' through consolidating and reinforcing the Enterprise Europe Network (EEN), the partners of which should, in turn, help organisations to make better use of ERDF financing for innovation.

- Improve the coherence and complementarity of EU policies for education, research and innovation, with the aim of:

- identifying and promoting the take-up of examples of good practice for policy-makers and innovation support providers; expanding and upgrading the 'Practical Guide on EU funding opportunities' in this area and establishing a single web-based portal on Commission support for research and innovation, linked to, or included in, the FP7 Participant Portal to facilitate access of innovating bodies to EU funding.

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[1] COM (2010)2020 'Europe 2020: a strategy for smart sustainable and inclusive growth'.

[2] Council of the EU EUCO 13/10, 17th June 2010.

[3] R. Wintjes, H. Hollanders, "The regional impact of technological change in 2020".

[4] COM (2010)110 Cohesion policy: Strategic Report 2010 on the implementation of the programmes 2007-2013

[5] Belgian Presidency input to informal competitiveness council, July 2010.

[6] "Innovation policy at regional level: Crafts and SME priorities for the new Innovation Strategy" – Discussion paper from UEAPME secretariat (2010).

[7] COM(2010)183 “Unlocking the potential of cultural and creative industries' .

[8] Conclusions of 17 May 2010

[9] EP Resolution (EP:A7-0138/2010, P7_TA(2010) 0189; May 2010).

[10] http://cordis.europa.eu/eu-funding-guide/home_en.html

[11] EESC CCMI/072 (July2010), 'Technology, Industrial innovation and Science Parks'.

[12] http://ec.europa.eu/regional_policy/sources/docoffic/working/sf2000_en.ht

[13] To be established under the European Cluster Observatory in 2011

[14] Risk-Sharing Finance Facility (RSFF) is a debt-financing facility co-developed by the EC and the EIB in order to foster private investment in research, technological development and innovation.

[15] Article 44 of Regulation 1083/2006